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Regulation 14 Interpretation of Part 3

Original text. Later amendments are not shown.

(1)

In this Part—

  • “buffer rate” has the meaning given in regulation 16(2);

  • “CRR rules” has the meaning given in section 144A (CRR rules) of FSMA 2000;

  • “financial holding company” has the meaning given in section 192O (interpretation) of FSMA 2000;

  • “FPC framework” has the meaning given in regulation 17(1);

  • “large building society” means a building society where the sum total of the following two values exceeds the amount specified in article 12(1) (core deposit level condition) of the 2014 Orderf1—

    1. (a)

      the value of shares issued by the building society that are not deferred shares, and

    2. (b)

      the value of deposits held in accounts with the building society where one or more of the account holders is a small business;

  • “mixed financial holding company” has the meaning given in section 192O (interpretation) of FSMA 2000;

  • “O-SII” means other systemically important institution (see regulation 15);

  • “parent undertaking” has the meaning given in section 420 (parent and subsidiary undertaking) of FSMA 2000f2;

  • “relevant O-SII” means an O-SII, or a part of an O-SII, which is—

    1. (a)

      a ring-fenced body, or

    2. (b)

      a UK deposit-taker (other than a building society) which satisfies—

      1. (i)

        the minimum core deposit level condition, and

      2. (ii)

        the trading assets condition,

    3. (c)

      a large building society, or

    4. (d)

      a financial holding company or a mixed financial holding company which—

      1. (i)

        has a ring-fenced body or a large building society as a subsidiary, and

      2. (ii)

        is required, whether by the PRA by a direction under section 192C (power to direct qualifying parent undertaking) of FSMA 2000f3 or otherwise, to comply with the requirements of the Capital Requirements Regulation and CRR rules on a sub-consolidated basis, or

    5. (e)

      a financial holding company or a mixed financial holding company which—

      1. (i)

        is the parent undertaking of a UK deposit-taker which satisfies both the minimum core deposit level condition and the trading assets condition, and

      2. (ii)

        is required, whether by the PRA by a direction under section 192C (power to direct qualifying parent undertaking) of FSMA 2000 or otherwise, to comply with the requirements of the Capital Requirements Regulation and CRR rules on a consolidated or sub-consolidated basis.

(2)

In this regulation—

(a)

“building society” has the meaning given in section 119 (interpretation) of the Building Societies Act 1986f4;

(b)

“the 2014 Order” means the Financial Services and Markets Act 2000 (Ring-fenced Bodies and Core Activities) Order 2014f5.

(3)

For the purposes of the definition of “large building society” in paragraph (1)—

(a)

“deferred shares”, “deposit” and “share” have the meanings given in section 119 (interpretation) of the Building Societies Act 1986f6;

(b)

“small business” has the meaning given in section 7(10) (the funding limit) of the Building Societies Act 1986f7.

(4)

For the purposes of the definition of “relevant O-SII” in paragraph (1)—

(a)

“core deposit” has the meaning given in article 2(2) (circumstances in which accepting a deposit is not a core activity) of the 2014 Orderf8;

(b)

“minimum core deposit level condition” means—

(i)

in the case of a UK deposit-taker which is not a member of a group, the condition that, at any particular time, the total core deposits of the UK deposit-taker exceed £35 billion,

(ii)

in the case of a UK deposit-taker which is a member of a group, the condition that, at any particular time, the sum of the total core deposits for each member of the group that is a relevant group member exceed £35 billion;

(c)

“relevant group member” means the member of a group which—

(i)

is a UK deposit-taker, and

(ii)

does not have permission under Part 4A of FSMA 2000f9 to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;

(d)

“ring-fenced body” has the meaning given in section 142A (ring-fenced body) of FSMA 2000f10;

(e)

“trading assets condition” has the meaning given in article 13A(1) (trading assets condition) of the 2014 Orderf11;

(f)

“UK deposit-taker” has the meaning given in article 1(3) (citation, commencement and interpretation) of the 2014 Orderf12;

(g)

for the purpose of determining whether the minimum core deposit level condition is satisfied—

(i)

core deposits denominated in a currency other than sterling must be converted into sterling by reference to an appropriate spot rate of exchange;

(ii)

a spot rate of exchange is appropriate if it is the middle spot exchange rate which—

(aa)

prevails on the London foreign exchange market at 4pm on the day on which the core deposits are calculated for the purpose of the minimum core deposit level condition, and

(bb)

is ascertained in accordance with the customary practices of that market.

Annotations

Footnotes

f1

S.I. 2014/1960. Article 12(1) was amended by S.I. 2025/30.

f2

Section 420 was amended by S.I. 2008/948 and 2019/632.

f3

Section 192C was inserted by section 27 of the Financial Services Act 2012.

f4

1986 c. 83.

f5

S.I. 2014/1960.

f6

The definition of “deferred shares” was amended by S.I. 2001/2617. The definitions of “deposit” and “share” were amended by Schedule 7 to the Building Societies Act 1997 (c. 32).

f7

Section 7(10) was amended by S.I. 2024/1024.

f8

S.I. 2014/1960. Article 2(2) was amended by S.I. 2019/632 and 2025/30.

f9

2000 c. 8.

f10

Section 142A was inserted by section 4 of the Financial Services (Banking Reform) Act 2013 (c. 33).

f11

Article 13A was inserted by S.I. 2025/30.

f12

The definition of ‘UK deposit-taker’ was substituted by S.I. 2016/1032.